v3.26.1
DISCONTINUED OPERATIONS
 6 Months Ended
Jun. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS

 

On June 11, 2026, AATP LB disposed of its entire 60% equity interest in DSY Wellness to an independent third party pursuant to the board resolution obtained. Upon completion of the transaction, AATP LB ceased to have a controlling financial interest in DSY Wellness, and DSY Wellness was deconsolidated from the Company’s consolidated financial statements effective June 11, 2026. Following the disposal, the independent third party owns 100% of the equity interests in DSY Wellness.

 

The disposal of DSY Wellness met the criteria for discontinued operations under ASC 205-20. Accordingly, the operating results of DSY Wellness through June 11, 2026, together with the gain on disposal, have been presented as discontinued operations in the unaudited condensed consolidated financial statements of operations for the period ended June 30, 2026.

 

The carrying amount of the assets and liabilities of discontinued operations as of June 30, 2026 and December 31, 2025 consist of the following:

 

 

       
   As of 
  

June 30, 2026

  

December 31, 2025

 
         
Current assets:          
Cash and cash equivalents  $5,208   $50,421 
Account receivables, net   1,590    8,292 
Amount due from related parties   148    494 
Inventories   1,765    1,243 
Prepaid taxes   28,081    24,510 
Prepayments and deposits   2,663    4,806 
Total current assets  $39,455   $89,766 
           
Non-current assets:          
Property and equipment, net  $7,935   $9,430 
Intangible assets, net   7,376    9,470 
Finance lease assets   49,570    58,109 
Total non-current assets  $64,881   $77,009 
           
Total assets of discontinued operations  $104,336   $166,775 
           
Current liabilities:          
Accounts payable   98,382    90,251 
Accounts payable – related parties   43,820    48,522 
Customer deposits   12,987    12,907 
Other payables and accrued liabilities   2,081    26,128 
Other payable – related parties   4,735    256 
Finance lease liabilities, current   11,268    10,863 
Total current liabilities  $173,273   $188,927 
           
Non-current liabilities          
Finance lease liabilities, non-current   55,424    61,468 
Total non-current liabilities  $55,424   $61,468 
           
Total liabilities of discontinued operations  $228,697   $250,395 

 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

4. DISCONTINUED OPERATIONS (Continued)

 

The summarized operating result of discontinued operations included in the Company’s unaudited condensed consolidated statements of operations and comprehensive loss consist of the following:

 

             
   For the three months ended   For the six months ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
                 
REVENUE  $95,404   $258,470   $347,474   $510,716 
                     
COST OF REVENUE   (39,560)   (114,898)   (148,514)   (232,640)
                     
GROSS PROFIT   55,844    143,572    198,960    278,076 
                     
SELLING   (964)   (2,676)   (3,342)   (5,192)
COMMISSION   (45)   -    (517)   - 
GENERAL AND ADMINISTRATIVE   (63,758)   (156,323)   (237,262)   (323,236)
TOTAL OPERATING EXPENSES   (64,767)   (158,999)   (241,121)   (328,428)
                     
LOSS FROM OPERATIONS   (8,923)   (15,427)   (42,161)   (50,352)
                     
OTHER INCOME                    
Other income, net   -    6    20    6 
Interest income   9    -    9    - 
TOTAL OTHER INCOME, NET   9    6    29    6 
                     
LOSS BEFORE INCOME TAXES   (8,914)   (15,421)   (42,132)   (50,346)
                     
INCOME TAX EXPENSE   -    -    -    - 
                     
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX   (8,914)   (15,421)   (42,132)   (50,346)
                     
INCOME ON DISPOSAL OF DISCONTINUED OPERATIONS   74,760    -    74,760    - 
                     
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS   65,846    (15,421)   32,628    (50,346)
                     
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST   (3,566)   (6,168)   (16,853)   (20,138)
                     
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO AGAPE ATP CORPORATION  $62,280   $(21,589)  $15,775   $(70,484)
                     
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING*   1,000,626    1,000,108    1,000,626    598,496 
                     
EARNINGS PER SHARE – DISCONTINUED OPERATIONS  $0.06   $(0.02)  $0.02   $(0.12)

 

* Weighted average number of common shares outstanding have been adjusted on a retroactive basis to reflect 1-for-50 reverse stock split effective on February 20, 2026.

 

 

AGAPE ATP CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(Currency expressed in United States Dollars (“US$”), except for number of shares)

 

4. DISCONTINUED OPERATIONS (Continued)

 

The summarized operating cash flows of discontinued operations included in the Company unaudited condensed consolidated statements of cash flows consist of the following:

 

       
  

For the six months ended

June 30,

 
   2026   2025 
         
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss from discontinued operations  $(42,132)  $(50,346)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation of property and equipment   1,486    1,593 
Amortization of intangible assets   2,098    2,302 
Amortization of finance lease assets   8,461    9,284 
Allowance for credit loss   415    7,903 
Changes in operating assets and liabilities:          
Accounts receivables   7,792    (5,983)
Amount due from related parties   504    - 
Inventories   (541)   52 
Prepaid taxes   (3,777)   (8,122)
Prepayments and deposits   2,172    1,630 
Other receivables   (151)    - 
Accounts payable   8,766    20,301 
Accounts payable – related parties   (4,580)   (2,496)
Customer deposits   95    (959)
Other payables and accrued liabilities   (25,834)   (159)
Other payables – related parties   4,589    (368)
Net cash used in operating activities from discontinued operations   (40,637)   (25,368)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchase of property and equipment   -    (660)
Net cash used in investing activities from discontinued operations   -    (660)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Payment of finance lease liabilities   (5,421)   (4,563)
Net cash used in financing activities from discontinued operations   (5,421)   (4,563)
           
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS   845    2,041 
           
DECREASE IN CASH AND CASH EQUIVALENTS   (45,213)   (28,550)
           
Cash and cash equivalents from discontinued operations, beginning of period   50,421    47,482 
           
Cash and cash equivalents from discontinued operations, end of period  $5,208   $18,932 
           
Income taxes paid from discontinued operations   3,777    8,122